Hot beverage containers have been historically constructed from two materials: polystyrene and wax-coated paper. They both have been well received by fast food industry and its consumers. Wax-coated paper products are becoming more popular in hot beverage industry due to its environmental-friendly properties: they are recyclable and they easily degrade on landfills. Wax-coated paper products, however, have very low insulation qualities.
Polystyrene is not easily recyclable nor biodegradable. It does not degrade easily by the exposure to the environment. It has to be disposed of in sanitary landfills, which are expensive to use. Polystyrene can be also incinerated. That method, however, creates many other environmental problems due to the toxic fumes the material emits during burning. Polystyrene however has excellent insulating properties.
People prefer drinking hot beverages from a mug with a handle. They do not enjoy drinking hot beverages from a glass (or a paper-cup) due to the burning sensation it creates in the hands, especially with a poorly insulated cup.